Stripe Rolls out Its Own Fiat-to-Crypto On-Ramp

US-based payments processing company Stripe has launched its own fiat-to-crypto on-ramp in order to allow clients to exchange dollars for cryptocurrencies.

This new transaction solution from Stripe takes on the form of a widget that can be integrated with various DeFi platforms. Stripe's decision to move further into the crypto market could help DeFi become more accessible to mainstream consumers at a time when centralized exchanges are under the microscope. 

The mainstream way to on-ramp fiat-to-crypto today is to purchase cryptocurrencies through a centralized exchange such as Binance, Coinbase, and Kraken. To leverage DeFi, users need to transfer the purchased cryptocurrencies to third-party wallets. 

Stripe officials highlighted the difficulty of getting users 'on-chain' or to fund their wallets with the crypto required to interface with Web3 applications as developers need to navigate complex KYC requirements and tackle fraud while providing a high-conversion payments experience. As such, Stripe revealed that it would handle KYC requirements, payments, fraud, and compliance. 

Besides, entities such as NFT marketplace Magic Eden, social NFT platform Nifty's, and decentralized exchange Orca already partner with Stripe for fiat-to-crypto on-ramp services. Stripe's new fiat-to-crypto on-ramp will only be available for US customers for the time being.

(Source: The Paypers)